Cyprus Statutory Audit: What it is, who needs one, and what it costs

Every private limited company registered in Cyprus needs its annual accounts audited by a licensed statutory auditor, whatever its size, profit, or trading activity. This guide covers who is exempt, what a Cyprus audit actually costs, and what we look for when we help international investors choose the right firm.

What is a statutory audit in Cyprus, and does your company need one?

Here at Auditnet, we work with Cyprus companies from the point of registration through to their first signed financial statements, so the question we hear most often from new clients is a simple one: does your company actually need an audit? If you have registered a private limited company in Cyprus, the answer is almost always yes. Under the Companies Law, Cap. 113, every Cyprus private limited company must have its annual financial statements audited by a licensed statutory auditor. That obligation sits with the Cyprus Registrar of Companies, the government body every Cyprus company files with. We prepare those audits under International Standards on Auditing, and the underlying financial statements themselves are prepared under IFRS as adopted by the EU.

A statutory audit is not the same as bookkeeping, and it is not optional paperwork attached to the tax return. It is an independent opinion on whether the accounts give a true and fair view, and it has to be signed by a firm licensed for that purpose. We work with clients from the moment they complete how to register a company in Cyprus through to their first signed financial statements, and the earlier the audit relationship starts, the smoother that first cycle runs. If you are still weighing up company registration in Cyprus, it is worth building the audit appointment into that plan rather than treating it as a task for later.

Who needs a full audit, and who can qualify for a review instead?

The audit obligation is triggered by being a registered Cyprus company, not by whether that company made a profit, broke even, or traded at all. A loss-making company and a dormant one sit under exactly the same rule. There is no general exemption based on size alone, which surprises a number of the international investors we speak with.

There is one narrow exception. A private limited company can replace a full statutory audit with a review engagement, a lighter process conducted under ISRE 2400, the International Standard on Review Engagements, if it meets both a turnover and a total assets threshold for two consecutive financial years. For financial years beginning on or after 6 February 2026, that turnover threshold rose from €200,000 to €300,000. The total gross assets threshold stays at €500,000. The route is not available to public companies, public-interest entities, regulated financial institutions, or any company required to prepare consolidated accounts.

Full statutory audit vs review engagement

Criterion	Full statutory audit	Review engagement (ISRE 2400)
Net turnover	No limit	Below €300,000 (FY beginning on or after 6 Feb 2026)
Total gross assets	No limit	Below €500,000
Consecutive years required	Not applicable	Both thresholds met for 2 consecutive years
Eligible entity types	All Cyprus companies	Private limited companies only, excluding public, PIE, regulated, or consolidating entities
Assurance level	Reasonable assurance (ISA)	Limited assurance (ISRE 2400)
Relative cost	Higher, reflecting full testing and evidence-gathering	Lower than a full audit, reflecting the lighter review procedures

What we’re seeing since the threshold changed

Since the turnover threshold moved to €300,000 in February, we have had a steady rise in enquiries from directors of holding companies and quiet subsidiaries asking whether they now qualify for a review rather than a full audit. In most of those conversations, once we add up intercompany recharges and group invoicing properly, the company still sits outside the exemption. Turnover on paper and turnover once every recharge is counted are not always the same number, and we run that check before anyone assumes the lighter route applies.

What does the Cyprus audit process look like, from appointment to filing?

The process runs in a fixed order: engagement and independence check, document request, fieldwork, draft financial statements, then filing. We start every audit with an engagement letter and an independence check, confirming we have not prepared the company’s own bookkeeping, since the same firm cannot do both and still sign the audit opinion.

Once engaged, we send a structured document request covering bank statements, invoices, contracts, and prior year figures where relevant. After fieldwork, we prepare draft financial statements for review before anything is finalised. The audit has to be finalised before the TD4 corporate tax return can be filed with the Tax Department, since the return references the audited or reviewed figures directly. That makes the audit the pacing item for the whole annual compliance cycle.

In our experience, a straightforward company with organised records can move from engagement to signed financial statements within a matter of weeks. A company with any of the factors above takes longer.

What does a Cyprus statutory audit cost?

What actually moves the fee is rarely company size alone. Transaction volume, the number of entities in a group structure, and the quality of the bookkeeping records we are handed all affect how much work an audit requires, and a qualifying review engagement will always cost less than a full audit because the procedures behind it are lighter.

We do not publish a fixed price list, because a dormant single-entity company and an active group subsidiary are genuinely different pieces of work, and quoting one figure for both would not be honest. What we can tell you upfront is what we will ask about before we quote: transaction volume, whether you sit within a group, and the state of your existing records. Because the audited figures feed directly into the TD4 return, it is also worth reviewing tax planning in Cyprus alongside your audit, since a combined audit and tax engagement with one firm removes a handover step and, in our experience, a source of delay. Contact us and we will give you a scoped quote based on your actual structure, not a generic range.

How to choose an audit firm in Cyprus

The choice matters most before you have even registered, not after. Most guidance on picking a Cyprus auditor starts with licensing and independence. Those are non-negotiable, but they are a baseline every legitimate firm meets, not a way to tell firms apart. What actually separates firms for an international investor is whether they will engage with you before the company exists, whether they quote a fixed fee up front, and whether they have handled a structure like yours before.

Some auditors only engage once a company exists and its first financial year is already underway. We work with investors earlier than that, because the audit relationship is easier to set up properly before the pressure of a deadline exists. Once the three questions above are answered, confirm the baseline: is the firm licensed on ICPAC’s public register, does it avoid also preparing your bookkeeping, and is a partner genuinely involved throughout rather than only at sign-off.

What to check when choosing an audit firm in Cyprus

Factor	What to check	Why it matters
Pre-registration engagement	Ask whether they will engage before your company is registered	Sets up the audit relationship properly before deadline pressure exists
Fixed quote before signing	Ask for a scoped, fixed quote before you commit, not open-ended billing	Protects against costs escalating once fieldwork starts
Sector and investor-type experience	Ask whether they have audited a similar structure or industry before	Reduces the risk that fieldwork becomes a learning exercise on your file
ICPAC licence	Confirm the firm appears on ICPAC’s public register	Only a licensed auditor can sign a statutory opinion
Independence	Confirm the firm does not also prepare your bookkeeping	An auditor cannot independently review records it prepared itself
Partner involvement	Ask whether a partner is involved throughout, not only at sign-off	Determines whether the audit gets senior judgement or junior throughput
International client communication	Ask how they report to directors or shareholders based abroad	Most Cyprus company owners are overseas and need remote-friendly reporting

We handle statutory audits as part of our wider Cyprus audit firm practice in Limassol, working with international investors from before company formation through to their annual filings.

Ready to talk to an auditor about your Cyprus company?

We audit Cyprus companies for international investors and directors, from the point of registration through to signed financial statements and the TD4 filing that follows them. Whether you need a full statutory audit or want us to confirm whether a review engagement applies to you, we can give you a clear answer before you commit to either. Contact Auditnet to talk through your Cyprus audit requirements.

Frequently asked questions

What is a statutory audit in Cyprus?

A statutory audit is the annual, independent examination of a Cyprus company’s financial statements, required under the Companies Law, Cap. 113. We conduct it under International Standards on Auditing, and the statements themselves are prepared under IFRS as adopted by the EU. Only a licensed statutory auditor can issue the opinion.

Can I appoint a Cyprus auditor before my company is registered?

Yes, and we would encourage it. Appointing an auditor early, at or before registration, means the relationship and the document process are already set up before your first financial year end creates any deadline pressure. If you are still at the registration stage, our guide on how to register a company in Cyprus is worth reading alongside this one.

Who qualifies for a review engagement instead of a full audit?

A private limited company qualifies if its net turnover is below €300,000 and its total gross assets are below €500,000, for two consecutive financial years, and it is not a public company, public-interest entity, regulated institution, or part of a consolidating group. We check both figures properly, including intercompany recharges, before confirming eligibility.

How much does a Cyprus statutory audit cost?

It depends on transaction volume, whether you sit within a group, and the state of your existing records, not on company size alone. A qualifying review engagement will always cost less than a full audit, since the procedures behind it are lighter. We do not publish a fixed price list because two companies of the same size can be genuinely different pieces of work. Contact us and we will give you a scoped quote based on your actual structure.

How long does a Cyprus company audit take?

A straightforward company with organised, reconciled records moves through our process quickly once engaged. What extends the timeline is incomplete records, group consolidation, foreign currency transactions, or a slow document handover. Since the audit has to be finalised before the TD4 return can be filed, an early start protects the whole compliance cycle.

How do I choose an audit firm in Cyprus?

Start with whether they will engage before your company is registered, whether they give a fixed quote up front, and whether they have handled a similar structure before. Those separate firms more than licensing does, since every legitimate firm is ICPAC-licensed by definition. Confirm the licence on ICPAC’s public register, then check independence and partner involvement as a baseline.

What should I ask an audit firm before I sign?

Ask whether they will take you on before your company is registered, whether they will give you a fixed, scoped quote rather than open-ended billing, and whether they have audited a company with a similar ownership structure or sector before. Those three questions tell you more about fit than licensing alone, which every legitimate Cyprus audit firm already has.

Can a Cyprus company avoid a statutory audit entirely?

No, not entirely. The obligation is triggered by being a registered Cyprus company, not by profitability or trading activity. The review engagement is a lighter form of assurance for qualifying small companies, not an exemption from independent oversight altogether.

When should I appoint an auditor after registering a Cyprus company?

As early as possible, ideally at or shortly after registration. Appointing an auditor early shortens the whole annual compliance cycle and avoids the handover delays we see in companies that leave it until the deadline is close.

What happens if a Cyprus company misses its audit deadline?

Missing the audit deadline risks penalties and, in persistent cases, administrative action by the Registrar of Companies. It also delays the TD4 corporate tax return, since that return references the audited or reviewed figures directly and cannot be finalised without them.